COBRA URGES INSURERS TO ADOPT BLACK BOX TECHNOLOGY TO AVOID DISCRIMINATION AND POTENTIAL INSURANCE TIME BOMB
- Labour Shadow Transport Minister calls for an industry-wide adoption of black box technology to reduce insurance premiums
- Telematics does not discriminate against gender or age
- Telematics technology helps drivers prove they are safe by recording how they drive
Telematics provider, Cobra UK welcomes the Labour Shadow Transport Minister, John Woodcock’s call for the insurance industry to embrace black box technology, in a bid to avoid a potential insurance ‘time bomb’ heading their way from Europe at the end of the year.
Unless insurers act now, a European Court ruling on shelving the current beneficial treatment towards women in the insurance industry, could see premiums soar. Labour claims that an industry-wide adoption of the black box technology, otherwise known as telematics, could help control rising insurance premiums for all drivers.
According to Cobra, who already provides the technology that powers the Co-Operative’s Young Driver Insurance, telematics does not discriminate against gender or age, and will not only lower an insurance company’s risk, but reward drivers for good driving with lower premiums.
Cobra provides a range of telematics solutions to fleets, vehicle manufacturers, logistics providers and insurance companies and has already seen its technology have a positive impact on drivers taking up the Co-Operative’s Young Driver Insurance.
Telematics technology gives drivers the chance to prove they are safe drivers by recording how they drive, by measuring key outputs from a car’s journey in real time such as times and distances, fuel consumption, mileage, cornering, braking, average speed, top speed, the car’s location, and journey type.
Andrew Smith, Managing Director of Cobra UK said: “Telematics technology ensures the driver’s insurance is based on how well they drive as an individual and not on a pre-conceived idea about how well they drive based on their gender or age.
“The technology encourages safer driving, can help reduce peak time congestion on the UK’s roads, and can even help reduce accidents across both private and professional drivers.”
Cobra’s telematics technology already powers three driver based insurance packages. These are:
- Pay How You Drive – the better your driving the lower your premiums
- Pay As You Drive – based on the time, distance and location of journeys covered by the driver
- Pay Per Use – premiums are based on a driver’s mileage
Pay how you drive insurance will automatically deliver lower premiums for those drivers who drive sensibly and pay as you drive means drivers only pay for the journeys they undertake.
Pay as you drive insurance also incentivises drivers to use their car away from the morning, late afternoon and holiday driving peaks, helping reduce both premiums and congestion at peak times.
“Our telematics technology is already available here and now for insurance companies wanting to adopt this approach. It’s the enabler for making an immediate and dramatic impact on drivers’ insurance premiums, as well as reducing insurers’ risk,” Smith added.